The Developer Journal Issue 1 | Page 64

INDUSTRY FOCUS

INDUSTRY FOCUS

HERE ARE SOME OF THE MORE IMPORTANT GUIDELINES .
• Draw up governing documents that focus on the developer ’ s right and ability to control the development of the project and sale of the units , rather than to control the board , and that enable rather than impede the business .
• Create a governance structure that encourages involvement by owners and other residents .
• Include the appointment of a transition team in the governing documents . A transition team of owners assures other owners that the directors appointed by the developer have managed the affairs of the community properly .
• Include alternative dispute resolution in the governing documents .
• Keep scrupulous financial records during the period of developer control , with annual audits , and a clear segregation of association funds and employees from developer funds and employees .
• Consider appointing an owner board member to serve as treasurer before the transfer of control , in order to minimise the concerns of the owners , and to encourage better discipline in keeping the association ’ s books .
• Avoid using association employees for developer work such as the completion of “ snag-lists ”, the preparation of properties for sale or property maintenance .
• Conduct construction contracts , sales and marketing in such a way as to minimise the possibility of litigation .
• Ensure that there is no gap in insurance cover at any stage of the transition process .
For a full report please contact louise @ estate-living . co . za
CONTACT : www . hoasupport . co . za